Global Policy Advocacy – Focus on Regulationhttps://www.hlregulation.com
Wed, 13 Dec 2017 11:42:48 +0000en-UShourly1https://wordpress.org/?v=4.7.8CFIUS under the Trump Administrationhttps://www.hlregulation.com/2016/12/01/cfius-under-the-trump-administration/
Thu, 01 Dec 2016 16:46:17 +0000http://www.hlregulation.com/?p=9045The incoming Trump administration's approach to foreign direct investment (FDI) in the United States and to national security reviews conducted by the Committee on Foreign Investment in the United States (CFIUS) is difficult to predict. Mr. Trump has criticized certain foreign investments in the United States, but his trade-related critiques have focused largely on U.S. free trade agreements and the loss of U.S. manufacturing jobs to foreign countries.

]]>The incoming Trump administration’s approach to foreign direct investment (FDI) in the United States and to national security reviews conducted by the Committee on Foreign Investment in the United States (CFIUS) is difficult to predict. Mr. Trump has criticized certain foreign investments in the United States, but his trade-related critiques have focused largely on U.S. free trade agreements and the loss of U.S. manufacturing jobs to foreign countries. Nonetheless, according to CNN, a Trump transition team draft memorandum outlining Mr. Trump’s trade policy for the first 200 days of his presidency indicates that Mr. Trump would mandate that CFIUS reviews be expanded to consider food security and reciprocity in the treatment of U.S. investments abroad.

Under existing law, CFIUS reviews are focused on threats to U.S. national security. “National security” is not a defined term under the relevant regulations and statute, so even without regulatory or statutory changes, the Trump administration could seek to expand the scope of CFIUS’s reviews by interpreting “national security” to include food security and reciprocity in cross-border investments. Chinese media reports and our discussions with Chinese investors suggest that, at least in the short term, some Chinese investors might be cautious about certain investments in the United States until they better understand the Trump administration’s likely approach to FDI in the United States.

]]>Ukraine and Russia Sanctions Developmentshttps://www.hlregulation.com/2014/03/20/ukraine-and-russia-sanctions-developments/
Thu, 20 Mar 2014 21:11:16 +0000http://www.hlregulation.com/?p=6073The European Union (EU) and the United States (U.S.) have now both taken targeted action to address the evolving situation in Ukraine. These measures do not impose restrictions on Ukraine or Russia, either territorially as countries or on their governments as a whole. However, new designations imposed on 17 March by the U.S. and the

]]>The European Union (EU) and the United States (U.S.) have now both taken targeted action to address the evolving situation in Ukraine. These measures do not impose restrictions on Ukraine or Russia, either territorially as countries or on their governments as a whole. However, new designations imposed on 17 March by the U.S. and the EU are significant, as described below, and therefore companies should assess their current operations in Russia and Ukraine. A number of the EU and U.S. designations overlap — Victor Yanukovych, former President of Ukraine; Leonid Slutshki, Chairman of the Commonwealth of Independent States Committee of the State Duma of the Russian Federation; Andrei Klishas, Chairman of the Committee on Constitutional Law of the Federation Council of the Russian Federation; Sergei Aksyonov, elected “Prime Minister of Crimea” on 27 February 2014; and Vladimir Konstantinov, speaker of the Supreme Council of the Autonomous Republic of Crimea.

]]>Hogan Lovells’ Global Bribery and Corruption Review 2013 Expects Increased Enforcement and Cooperationhttps://www.hlregulation.com/2014/02/21/hogan-lovells-global-bribery-and-corruption-review-2013-expects-increased-enforcement-and-cooperation/
Fri, 21 Feb 2014 16:22:17 +0000http://www.hlregulation.com/?p=5943The global effort to combat bribery and corruption continued to grow throughout 2013, from the United States to the United Kingdom, Latin America to Asia, and many places in between. The Hogan Lovells Bribery and Corruption Task Force has released its fourth annual review of the latest developments in anti-bribery and corruption regulation and enforcement

The global effort to combat bribery and corruption continued to grow throughout 2013, from the United States to the United Kingdom, Latin America to Asia, and many places in between.

The Hogan Lovells Bribery and Corruption Task Force has released its fourth annual review of the latest developments in anti-bribery and corruption regulation and enforcement around the world. A key finding from this year’s review is that the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have made enforcement actions against individuals the clear priority, while simultaneously rewarding organizations and individuals for self-disclosing corrupt activities.

]]>European Commission publishes minimum principles for shale gas explorationhttps://www.hlregulation.com/2014/02/03/european-commission-publishes-minimum-principles-for-shale-gas-exploration/
Mon, 03 Feb 2014 15:10:05 +0000http://www.hlregulation.com/?p=5864On 22 January 2014, the European Commission (Commission) published a “Recommendation on minimum principles for the exploration and production of hydrocarbons (such as shale gas) using high volume hydraulic fracturing” (Recommendation). The Recommendation sets out minimum core principles for the exploration and production of hydrocarbons (e.g., shale gas) using high-volume hydraulic fracturing. The Recommendation is

]]>On 22 January 2014, the European Commission (Commission) published a “Recommendation on minimum principles for the exploration and production of hydrocarbons (such as shale gas) using high volume hydraulic fracturing” (Recommendation). The Recommendation sets out minimum core principles for the exploration and production of hydrocarbons (e.g., shale gas) using high-volume hydraulic fracturing. The Recommendation is intended to complement existing EU legislation.

It is accompanied by a “Communication on the exploration and production of hydrocarbons (such as shale gas) using high volume hydraulic fracturing in the EU” (Communication) outlining the potential new opportunities and challenges stemming from shale gas extraction in Europe, as well as an Impact Assessment that examined the socio-economic and environmental impacts of various policy options.

The Recommendation and the Communication are the culmination of the online stakeholder consultation and stakeholder meeting held by the Commission last year concerning shale gas developments in the EU (please see our earlier Environment and Energy Alert for more information on the consultation).

The Recommendation

The Recommendation aims to ensure that proper environmental and climate safeguards are in place for the exploration and production of hydrocarbons, including shale gas. In the preamble to the Recommendation, the Commission suggests that EU environmental legislation is outdated with regards to new exploration methods such as hydraulic fracturing. The Recommendation is intended to assist EU member states that allow hydraulic fracturing in their jurisdictions in addressing the health and environmental risks in regards to this method of shale gas exploration and improve transparency for citizens.

ensure that the integrity of the well is up to best practice standards;

capture methane emissions;

check the quality of the local water, air, and soil before operations start in order to monitor any changes and deal with emerging risks;

control air emissions, including greenhouse gas emissions, by capturing the gases;

inform the public about chemicals used in individual wells; and

ensure that operators apply best practices throughout the project.

The Recommendation is not legally binding. EU member states are still free to, for example, introduce or maintain a ban on shale gas exploration, or introduce or maintain detailed national measures on shale gas exploration. As a result, the area of unconventional hydrocarbons exploration and development remains, to a large extent, un-harmonized at the EU level.

In the accompanying Q&As, the Commission explained that the choice of a non-binding recommendation, as opposed to a binding measure such as a directive or regulation, was dictated by the urgency of the situation. A recommendation to EU member states has the advantage of being applied faster, while at the same time providing a common reference for action at the national level.

Next Steps

The Recommendation will soon officially be published in all official languages of the EU. EU member states are invited to make the principles of the Recommendation effective within six months from the date of its publication. From December 2014 onwards, EU member states shall inform the Commission annually about the effectiveness of the Recommendation.

The Commission will closely monitor the implementation of the principles set out in the Recommendation. Furthermore, the Commission will review the effectiveness of this approach in 18 months. Based on this review, the Commission will decide whether or not it is necessary to put forward legislative proposals with legally binding provisions on the exploration and production of hydrocarbons using high-volume hydraulic fracturing.

Impact

The Recommendation from the Commission on hydraulic fracturing shall be of great interest to all entities already active or planning to get involved in this sector in the EU. Successful application of the Recommendation may avoid or postpone the adoption of binding EU rules, and, therefore, allow EU member states with shale gas potential, like the UK, Poland, or Romania, to preserve greater influence on their domestic energy policies. Despite the non-binding character of the Recommendation, EU member states are very likely to follow the rules set out therein. As a result, companies active in the shale gas sector should be prepared to integrate the principles of the Recommendation into their environmental regulatory compliance policy and strategic business planning.

]]>Sen. Lisa Murkowski (R-AK), Ranking Republican on the Senate Energy and Natural Resources Committee, last week released another of her “Energy 20/20” white papers entitled, “A Signal to the World: Renovating the Architecture of U.S. Energy Exports.” The paper reviews current federal energy export policies on everything from crude oil to nuclear power and comes at a time when policymakers in Washington are beginning to review the policies, many of which are decades old and may not reflect recent technological and energy production advancements in the United States.

Though the paper provided commentary on a range of energy exports, policymakers and energy producers were most interested in the paper’s examination of U.S. crude oil and liquefied natural gas (LNG) exports.

With regard to the export of crude oil (and related condensates), Murkowski’s white paper argues that the domestic crude market is irrationally constrained while prices are set on a global scale, which creates market distortions and harms consumers. She further suggests that the major growth of U.S. crude oil production in the Bakken, Eagle Ford, and other fields has been in light, sweet crude, which many current U.S. refineries are not equipped to accommodate, and that the growth in production may “exceed not only the nation’s light refining capacity, but also the ability of refiners to adapt to the new production slate.”

The paper recommends that the de facto ban on crude exports be lifted and recommends a variety of alternatives to achieve this. First, the paper argues that “the President may also simply make a national interest determination that the present regulatory structure, which generally prohibits crude oil exports, is unnecessary and counter-productive.” She further suggests that the U.S. Commerce Department already retains the statutory authority to lift the ban and cites a CRS memo that states the ban could be lifted “for compelling economic or technological reasons that are beyond the control of the applicant, the crude oil cannot reasonably be marketed in the United States.” Should the administration not move forward to approve crude oil exports, the paper states, “then the Senate should update the law to reflect 21st-century conditions.”

Murkowski is not alone on the Senate Energy and Natural Resources Committee in favoring a review of current energy export policies, particularly those relating to crude oil. Sen. Mary Landrieu (D-LA), currently the third most senior Democrat on the committee and who is poised to ascend to its Chairmanship this spring due to committee leadership changes triggered by the likely retirement of Sen. Max Baucus (D-MT), this week said that the administration should reexamine the ban on crude exports, stating, “We need to relook at it because the whole world has changed in terms of domestic energy production both in gas and oil and it’s important for our policies to be updated.” Murkowski and Landrieu, as the top two senators on the Energy and Natural Resources Committee, would form a powerful duo on the issue.

Adding fuel to the fire were U.S. Energy Secretary Ernest Moniz’s comments late last year suggesting that the U.S. revisit its oil export ban. Taken together, it is no longer beyond the realm of possibility that the ban on crude exports will continue indefinitely. Federal policymakers are engaging on the issue and staking out positions that may have ramifications for decades to come.

The House Energy and Commerce Committee has also announced plans to release a broad-ranging report on LNG exports later this month. The report is intended to accelerate LNG export policy discussions both in congress and within the administration. The report will reflect information gathered through a number of the Committee’s hearings and forums held throughout 2013.

]]>2014 U.S. Congress Legislative Calendarhttps://www.hlregulation.com/2013/12/12/2014-u-s-congress-legislative-calendar-2/
Thu, 12 Dec 2013 16:46:28 +0000http://www.hlregulation.com/?p=5653The U.S. House and Senate have released their legislative calenders for the second session of the 113th Congress. Hogan Lovells Legislation and Political Law Compliance practice is happy to provide you with this schedule for your 2014 planning purposes. This schedule may change at any time at the direction of House and Senate leadership. Calendar

]]>U.S. Government shutdown and debt-ceiling impasse resolved, until early 2014https://www.hlregulation.com/2013/10/18/u-s-government-shutdown-and-debt-ceiling-impasse-resolved-until-early-2014/
Fri, 18 Oct 2013 16:35:21 +0000http://www.hlregulation.com/?p=5335On October 16, after weeks of stalemate and false starts, the U.S. Senate and House both passed legislation, signed by President Obama, to increase the U.S. debt-ceiling and continue to fund U.S. Government operations through January 15, 2014. Though efforts had been made over the past two weeks — in both houses and by both

]]>On October 16, after weeks of stalemate and false starts, the U.S. Senate and House both passed legislation, signed by President Obama, to increase the U.S. debt-ceiling and continue to fund U.S. Government operations through January 15, 2014. Though efforts had been made over the past two weeks — in both houses and by both parties — to include provisions relating to the Affordable Care Act (ACA), entitlement spending, tax reforms, and sequestration, among other issues, the final legislation signed into law dealt with almost none of these issues, with the exception of a provision requiring income verification for subsidies under the ACA.

]]>Senate Energy Committee Schedules Forums on Natural Gashttps://www.hlregulation.com/2013/04/04/senate-energy-committee-schedules-forums-on-natural-gas/
Thu, 04 Apr 2013 18:23:04 +0000http://www.hlregulation.com/?p=4285The Senate Energy and Natural Resources Committee has announced it will hold a series of roundtable forums on natural gas issues in May. Each of the three forums, which follow a February Committee hearing on natural gas challenges and opportunities, will focus on specific policy issues facing the country’s growing natural gas resources. The May

The May 16 forum will focus on “Infrastructure, Transportation, Research and Innovation,” and will explore how producers will meet the growing demand for natural gas, the need to expand natural gas pipeline and vehicle refueling infrastructure, and the role of government in promoting the increased use of natural gas use in the transportation sector, both with respect to trucks and passenger vehicles. This will also be a good opportunity to discuss the opportunity to capture CO2 from natural gas midstream processing plants that could provide anthropogenic CO2 for use in enhanced oil recovery projects.

A forum on “Domestic Supply and Exports” will follow on May 21. It will focus on current estimates of natural gas reserves and the positive and negative impacts of natural gas exports. This forum will allow producers to explain the opportunity of the increase in the supply of LPG’s as feedstock for the growing US petrochemical industry and other industries that use natural gas as a fuel if gas production can be accelerated.

The final forum, “Shale Development: Best Practices and Environmental Concerns,” will be held May 23. Witnesses will discuss the impact of hydraulic fracturing for natural gas extraction and environmental impacts of fracking and shale gas development. The Committee will be gathering information about where to best establish procedures for regulating and understanding the environmental issues associated with shale gas development.

Rather than the typical committee hearing, the three forums are touted by Chairman Ron Wyden (D-OR) as roundtables, designed to allow more robust, in-depth discussion of particular issues with input from multiple witnesses and Committee Members. Witnesses have not been announced.

The forums will provide information to Chairman Wyden and Committee members that will likely lay the foundation for natural gas legislation that will likely be introduced for consideration in this Congress. If you would like more information on the forums or would like to participate in the forums, please contact a member of the Hogan Lovells Energy or Government Relations teams.

]]>Review of issues for 2013https://www.hlregulation.com/2013/01/29/review-of-issues-for-2013/
Tue, 29 Jan 2013 19:17:09 +0000http://www.hlregulation.com/?p=3811The following is a summary of some of the key issues Congress and the Administration will be debating in 2013. Please contact us with any questions. We are happy to provide further analysis as well as insight into other areas of interest. Agriculture: Tom Vilsack is expected to stay on as Secretary of Agriculture. The

]]>The following is a summary of some of the key issues Congress and the Administration will be debating in 2013. Please contact us with any questions. We are happy to provide further analysis as well as insight into other areas of interest.

Agriculture: Tom Vilsack is expected to stay on as Secretary of Agriculture. The House Agriculture Committee will continue to be led by Chairman Lucas (R-OK) and Ranking Member Peterson (D-MN). Chairwoman Debbie Stabenow (D-MI) and Ranking Member Thad Cochran (R-MS) will control the Agriculture Committee in the Senate. The Administration is expected to continue to support efforts behind the President’s National Export Initiative to open new markets for U.S. products and services. President Obama will also continue to support U.S. negotiations with countries under the Trans-Pacific Partnership.

The Fiscal Cliff agreement (HR 8, American Taxpayer Relief Act) includes a nine-month Farm Bill extension. Committee Members will go back to work to reauthorize a longer term (5 year) Farm Bill Reauthorization during the 113th Congress. Chairwoman Stabenow has already called for a mark-up of the bill in early February 2013. SNAP, the implementation of the Healthy, Hunger-Free Kids Act of 2010, Renewable Fuel Standards, and the Commodity Futures Trading Commission (CFTC) will continue to be debated in 2013.

]]>Update on “Fiscal Cliff” Talkshttps://www.hlregulation.com/2012/12/14/update-on-fiscal-cliff-talks/
Fri, 14 Dec 2012 18:44:36 +0000http://www.hlregulation.com/?p=3143President Obama and congressional Republican leaders continue to negotiate in an effort to pass legislation by year-end that would defer the “fiscal cliff” of higher tax rates and spending cuts scheduled to occur beginning January 1, 2013. To date, these negotiations have produced little if any progress. President Barack Obama remains insistent that any deal

]]>President Obama and congressional Republican leaders continue to negotiate in an effort to pass legislation by year-end that would defer the “fiscal cliff” of higher tax rates and spending cuts scheduled to occur beginning January 1, 2013.

To date, these negotiations have produced little if any progress. President Barack Obama remains insistent that any deal must increase existing tax rates on taxable incomes exceeding $200k ($250k for married couples). House Speaker John Boehner (R-OH) has expressed opposition to raising any income tax rates and has promoted revenue increases through closing of loopholes and limiting deductions. Boehner has also called for entitlement spending cuts to be part of any deal, while President Obama has resisted the inclusion of entitlement cuts.

As time to complete a deal before year-end continues to dwindle, there is increasing talk in Congress of a “break the glass” backup option: House passage of the Democrats’ tax bill passed by the Senate on July 25, 2012. This bill, S. 3412, includes extension through the end of 2013 of all Bush (2001, 2003 and 2010) tax rates up to taxable incomes of $200k/$250k; the AMT patch (extended to end of 2012); top dividend and capital gains rates at 20%; the child tax credit; education related benefits; the adoption credit; the American opportunity tax credit; and a few other similar items. This bill did not include any extension of existing rates/unified credit for estate and gift taxes.

We continue to believe It is more likely than not that President Obama and Republican leaders will reach a deal by year-end that will include a combination of tax increases and spending cuts, perhaps with a framework for broader tax and entitlement reform in 2013. As we get closer to year-end, however, if there is no sign of any progress on such a deal, we believe there is a good chance that the House may take-up this Senate-passed bill as a “break the glass” option. In addition to these two scenarios, there are two other possibilities: 1) House and Senate congressional leaders negotiate and pass their own deal which represents a modification of S. 3412; and 2) there is no deal passed in 2012 and the President and Congress return in early January and attempt to pass a bill after the drop off the cliff. The one significant problem with the latter scenario is that it is questionable whether and for how long after the end of 2012 Congress will be able to retroactively extend the “AMT patch” to prevent a tax increase on more than 28 million middle-income taxpayers, since the AMT patch expired at the end of 2011.